Help understanding O/O with a company
 

I'd like to get into OTR trucking in the future, so I'm reasearching it, and I found something I really don't understand. Where drivers drive O/O with a company. Do they drive like they where driving a company truck only paying for their insurance/fuel/maintanance, with their own truck, of course? Does the company still dispatch them? Swift says that all the fleets are limited to 65 MPH, including the O/O fleets. If it is O/O, shouldn't the O/O be able to drive any speed they very well please? After all, it is their truck. Or is the trailer limiting that? Could anybody explain this to me like I was a five year old, please? Any assistance is very appericiated.

There name will be on the side of your truck so you represent them. Keeping you under 65 is one way they can limit you getting into trouble.

They are most likely doing this to keep their insurance rates low. I don't drive all that fast, but I would not lease to ANY carrier who would govern my truck. I figure that it is my money paying for the truck, fuel, etc., so I will decide what is done with the speed limiter. Of course, if it is a lease truck, then it belongs to the carrier anyway. The driver is only making the payments. :roll:

Thanks for clearing that up. Now, how exactly does the whole O/O within a company work? If someone leases a truck from their carrier (against everyones advise), does the company then, inturn lease the truck back? How exacty does this process work, once again, like I was five years old, please?

If you lease a truck from your carrier, you are NOT an owner operator. You are a lease operator. You are basically a company driver who makes all the truck payments, pays for all maintenance and never owns the truck. Some carriers will lease you a truck and pay you mileage. I don't know of any of the lease carriers who pay percentage. Most of these lease carriers have mandatory maintenance accounts which automatically come out of your settlements. Some will keep that money should you fail to complete your lease. When you lease a truck from your carrier you will also sign a lease agreement to haul their freight. Most of the time all of your payments, maintenance account, escrow, etc., will automatically come out of your settlement and you get what is left over. If there isn't anything left, then you don't have any money that week. You can buy a truck and have monthly payments for about 1/4 of what these carriers charge you for their truck. If I am going to pay for a truck it will be one that I own. We have discussed these lease deals numerous times. If you want to find out a lot about them, you can do a search. Much has been written. I have yet to see one which is in the best interest of the owner operator. You will make more money as a company driver than you will when you lease one of their trucks. It costs a lot to maintain a truck.

Thanks, now all my lease questions are out of the way. Now is for the O/O part. I'll set up a scenario, and we'll go from there.

Here is the scenario:

Somebody is driving with a company, but they don't like Freightliners, and that's all the company has, is Freightliners with small sleepers. They save their money, and buy a KW with the studio sleeper. They like the company, just not the trucks, so they still want to drive for the company, just with their own truck.

How would this work?

Again, thanks.

You can buy any type of truck you want and lease it to a carrier as long as the truck meets the carriers requirements. Some have weight, wheelbase and 5th wheel requirements. If you own a truck you can usually find someone with whom to lease. You can always buy a trailer and get your own authority.

Thanks, I now understand O/O within a company. Sorry to bother you with so many questions. Thanks again.

One more thing, you didn't ask, consider that a bonus! :D
"Good company" definition, could be quiet different, if you are an O/O!
I mean money wise! :wink:

You are welcome. It isn't a bother. Ask anything you wish. That is why we are here.